Martha Sentenced….

Stocks are
flat today as oil prices rise on new pipeline attacks in Iraq. 

Martha Stewart was sentenced to a 5-month prison
term.

Stewart’s stock
(
MSO |
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rallied on the news.

KMart
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rallied on the news
as well; the company is offering Martha Stewart items on sale for 25% off.
Martha supporters are circulating a petition to be sent to Bush requesting a
Presidential pardon.

IBM
(
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reported
strong earnings on revenue of $23.2 billion with strength in its hardware and
technology services sectors. Earnings for the quarter was at $2 billion or $1.16
a share, beating consensus by 4 cents.

Dell

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boosted its quarterly
outlook, expecting earnings of 31 cents a share with revenue steady at $11.7
billion.

Freescale cut its IPO
price to $13 from the planned $17.50 – $19.50. FSL is trading at 13.69.

The US Senate passed a bill to
give the FDA power to regulate cigarettes and $12 billion in aid to tobacco
farmers. Altria
(
MO |
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and
R.J.
Reynolds Tobacco

(
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rose on the
news. Rambus
(
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reported earnings of $8.3 million on strong
contract revenue that jumped 20% to $35 million. Oil prices rose to a six-week
high as speculators initiated a new wave of buying. OPEC will be raising output
by 500,000 bpd starting August 1.

Dow +20.93 10183.89
S&P 500 +0.24 1106.93
Nasdaq +9.54 1903.10

Strong today are: Oil Index
(
XOI.X |
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+1.22%, Energy
(
DXE.X |
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+1.10%, Oil Services
(
OSX.X |
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+0.97%, Gold and Silver
(
XAU.X |
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+0.87%,  

Weak today are: Airlines
(
XAL.X |
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-1.20%, Retail
(
RLX.X |
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, -1.08%.

Economic news release include
CPI prices that rose by 0.3%, core CPI rose 0.1% and the Michigan Sentiment
stood at 96.0.

10-year Notes are +270
at 111 075

The dollar
is -0.85 at 87.35

Gold is +3.80 at 409.50

Crude Oil is +0.59 at
41.00

Volume is 620 million on
the NYSE, and 700 million on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing 1891 Up Vol 241
Declining 1132 Down Vol 264
Ratio 1.67 1.09
Nasdaq
Advancing 1154 Up Vol 236
Declining 1622 Down Vol 393
Ratio 1.41 1.67

Top Dow stocks are:

Johnson & Johnson
(
JNJ |
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,
+2.17%, Altria
(
MO |
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, +1.99%, IBM
(
IBM |
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, +1.76%,
Honeywell

(
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, +1.29%.

Stocks in the news:

Lexar
(
LEXR |
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fell after reporting a loss of  $18.1
million with revenue that more than doubled. CEO Eric Stang said deeper and more
frequent price cuts led to the unexpected loss.

Netflix
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reported earnings of 11 cents with
sales up at $120.3 million. The company said its churn rate rose after its most
recent price hike and warned of higher subscriber acquisition costs.

PNC Financial
(
PNC |
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announced plans to acquire
Riggs National

(
RIGS |
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for $779 million.

Stryker
(
SYK |
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posted earnings of $152.7 million
with revenue at $1.043 billion. Banc of America Securities and Wells Fargo
downgraded the stock on the news.

Brice Wightman

bricew@tradingmarkets.com